Richard Russell: “When things get this crazy, one has to go by the seat of one’s pants. According to Gene Epstein in this week’s Barron’s, the US jobless rate is not 7.6%, it’s actually 7.9%. Since the 2009 lows, the nation’s Gross National Product has swelled by $1.3 trillion, but the stock market has gained $12 trillion in value.
Meanwhile, the VIX has dropped to a multi-month low under 12, meaning that option traders see low volatility in coming months. And I’m thinking, after the calm comes the storm. For all the above reasons plus a churning in my stomach, I’m exiting this market (good-bye DIAs), and I suggest that maybe my subscribers might do the same. But it’s up to the individual. You might stick around with a mental stop loss on your DIAs if they break below 154.
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